Published: Monday, July 15, 2013 at 05:16 PM.

The $278.9 million spending plan also calls for a 5-cent gas tax hike.

The property tax rate increase – from 3.28 mills to 3.62 mills – would generate an additional $4.3 million annually, while the gas tax increase would generate an extra $3.3 million.

Padgett’s proposal marks a dramatic departure from the budgets proposed and passed in Okaloosa County over the past five years. Since 2008, the county has taken major steps to avoid raising taxes including reducing its annual budget by about 18 percent, or almost $56 million, and cutting its workforce by 89 employees. The county also has repeatedly pulled money from its reserves to balance annual budgets.

But those cost-cutting measures have taken a heavy toll, Padgett said.

“Okaloosa County has fallen significantly behind in addressing levels of service on a number of fronts,” he said. “Major capital project funding remains a challenge. Any desire to step up road construction, resurfacing or storm water projects will require additional funding.”

The county, Padgett said, must take a new approach if it wants to maintain the level of service it provides to residents.

“The time has come that we need to reverse this trend,” he said. “We need to raise the revenue to pay our bills and (not) run out of reserves so if something happens we have to go out and borrow money.”

County Commission chairman Don Amunds said he is not inclined to support a budget that raises property taxes or gas taxes.

“It’s definitely a tough year,” he said. “But at the end of the day, everyone has to live within their means.”

Padgett’s proposed budget includes a 3 percent salary increase for county employees that would start Oct. 1, the beginning of the next fiscal year. It also includes a $2 million increase for the Sheriff’s Office, about half of what Sheriff Larry Ashley has requested. Of that $2 million, $600,000 would be used for state retirement fund contributions, another $600,000 would pay for a 3 percent salary increase for Sheriff’s Office employees, and the remaining $800,000 would be allocated according to other agency needs.

Any additional revenue generated by a gas tax increase can be used only for road construction and repair and specific infrastructure projects.

Padgett said he is pleased with the tentative budget and eager to hear from commissioners and residents. The county will hold several budget reviews through early August before commissioners take a final vote.

“In my opinion, it’s a good approach,” he said. “But if the board elects not to do that … I’ll make adjustments and pull things out that I had put in there and then balance it.”

The $278.9 million spending plan also calls for a 5-cent gas tax hike.

The property tax rate increase – from 3.28 mills to 3.62 mills – would generate an additional $4.3 million annually, while the gas tax increase would generate an extra $3.3 million.

Padgett’s proposal marks a dramatic departure from the budgets proposed and passed in Okaloosa County over the past five years. Since 2008, the county has taken major steps to avoid raising taxes including reducing its annual budget by about 18 percent, or almost $56 million, and cutting its workforce by 89 employees. The county also has repeatedly pulled money from its reserves to balance annual budgets.

But those cost-cutting measures have taken a heavy toll, Padgett said.

“Okaloosa County has fallen significantly behind in addressing levels of service on a number of fronts,” he said. “Major capital project funding remains a challenge. Any desire to step up road construction, resurfacing or storm water projects will require additional funding.”

The county, Padgett said, must take a new approach if it wants to maintain the level of service it provides to residents.

“The time has come that we need to reverse this trend,” he said. “We need to raise the revenue to pay our bills and (not) run out of reserves so if something happens we have to go out and borrow money.”

County Commission chairman Don Amunds said he is not inclined to support a budget that raises property taxes or gas taxes.

“It’s definitely a tough year,” he said. “But at the end of the day, everyone has to live within their means.”

Padgett’s proposed budget includes a 3 percent salary increase for county employees that would start Oct. 1, the beginning of the next fiscal year. It also includes a $2 million increase for the Sheriff’s Office, about half of what Sheriff Larry Ashley has requested. Of that $2 million, $600,000 would be used for state retirement fund contributions, another $600,000 would pay for a 3 percent salary increase for Sheriff’s Office employees, and the remaining $800,000 would be allocated according to other agency needs.

Any additional revenue generated by a gas tax increase can be used only for road construction and repair and specific infrastructure projects.

Padgett said he is pleased with the tentative budget and eager to hear from commissioners and residents. The county will hold several budget reviews through early August before commissioners take a final vote.

“In my opinion, it’s a good approach,” he said. “But if the board elects not to do that … I’ll make adjustments and pull things out that I had put in there and then balance it.”